Independent broker and financial technology provider ITG’s PowerMatch functionality, which provides POSIT Alert’s highest-performing users with notification of larger trading opportunities, is delivering average block sizes of 66,000 shares in the US and 85,000 shares in Canada.
This is about two times larger than average human trade sizes in POSIT Alert overall.
For small cap names, PowerMatch offers average block sizes which amount to 39 per cent of average daily volume (ADV) in the US and 27 per cent of ADV in Canada, as of August 2016.
PowerMatch notifications are available to all POSIT Alert participants with PowerMatch scores of at least 75 on a scale of 100. All Alert participants are scored on an average of several block crossing participation factors, weighted to reflect relative importance. The highest PowerScores are given to traders who contribute liquidity to the pool, respond quickly, firm up an order, and firm up in size.
The PowerScore methodology has been improved based on client feedback collected since its launch in May.
“The PowerScore approach has been a clear success, improving the quality of interactions in POSIT Alert overall and offering PowerMatch opportunities to our best block traders,” says Andrew Larkin, managing director in charge of POSIT Alert coverage at ITG.
ITG will be launching new Broker Block functionality in POSIT Alert in October. POSIT Alert participants who choose to enable Broker Block functionality will have the option to trade with sell-side conditional orders, providing the opportunity to source block liquidity from a curated list of institutional brokers. Broker Blocks enhances the significant buy-side block liquidity currently available in POSIT Alert. At launch, Broker Blocks will be available in the US.
ITG’s head of execution services Jamie Selway (pictured) says: “We are dedicated to providing clients with access to quality block liquidity and to continually improving outcomes for the POSIT Alert community.”
